U.S. coal exports

Background
In 2008, the United States exported almost 74 million tons of coal. Other major producers were Australia (252 million tons), Indonesia (203 million tons), Russia (101 million tons), Colombia (74 million tons), South Africa (62 million tons), and China (47 million tons), according to the World Coal Institute. U.S. coal exports consisted of 35 million tons of steam coal (used in power plants) and 39 million tons of "coking" or "metallurgical" coal, a high-quality type of coal used in steel production. According to the EIA, total U.S. 2007 exports was 60 million tons, and 2008 exports were 81.5 million tons.

An increase in the global demand for coal has made the United States a major exporter for the first time in several decades. Domestic buyers of coal are now having to compete with international markets in places like Japan and Germany. As a result, coal prices in the U.S.'s Powder River Basin and in the Appalachia region, increased from 2007 to 2008, with slight dips on occasion. The price of coal remained steady during that period for a couple of prime reasons, said economists, because coal produces half of U.S. domestic power and is vital for the country's steel industry. In the last several years, coal use has increased approximately 4% globally, which is a trend many opponents of coal would like to see reversed because of coal's contribution to climate change.

Additionally, the boom in U.S. coal consumption globally up to 2008 was linked to the falling U.S. dollar, which made U.S. coal less expensive on international markets. China, which formally exported much of its mined coal, has done exported less of their coal in the past years because consumption in the country has increased dramatically. As other countries in Asia continue to increase their use of coal to produce power, it is likely that the U.S. will continue to export more of its own coal reserves.

In 2009, the U.S. exported 59 million short tons, due to the 2008 global economic depression.

The U.S. exported 81.5 million tons of coal in 2010. By far, the greatest increase was exports to China, which rose from just 2,714 tons in 2009 to 2,916,710 tons in the first half of 2010. U.S. coal exports increased by 4 million tons (23.4 percent) between first and second quarters of 2010 - by June 2010, U.S. coal exports were 39.7 million tons, according to the EIA.

Coal exports from the United States are expected to jump 70 percent in 2011, due in part to increased demand in Asia-Pacific. Analysts say total U.S. coal exports could amount to 100 million short tons in 2011, leaving only Australia and Indonesia above it in the world export rankings, and putting it above Russia, Colombia and South Africa. However, in 2011 the United States exported more coal than it had since 1991 at an annual rate of 96 million metric tons in 2011 compared to 99.3 million tons reached in 1991. The increase was reported to be a result of massive flooding in Australia that delayed coal shipments to Asian countries for steel production.

Foreign and Domestic Coal Distribution by State of Origin
The following is the most recent report of coal distribution by state of origin compiled by the Energy Information Administration. The following data is from 2008 and is measured by thousand short tons.

Steam Coal Exports by U.S. Customs District
The following is the most recent data on coal exports separated by U.S. Custom Districts. The following numbers reflect the amount of coal that travels through each district for export, broken down by year. The information was compiled by the Energy Information Administration in January 2010. The following data is from 2008 and 2009 and is measured by thousand short tons.

- = No data are reported.

NM = Not meaningful due to changes of 500 percent or more.

Note: · ''Total may not equal sum of components because of independent rounding.'

CONSOL Energy
The Buchanan Mine, an underground mine in Virginia operated by CONSOL Energy, secured a contract in 2009 to ship 88,000 tons of metallurgical coal to China.

Massey Energy
For 2008 Massey Energy reported export revenues of $756.3 million, or 30% of the company's overall production revenues of $2.6 billion.

Northwest ports to be used to export Powder River Basin coal to Asian markets
For more information on the proposed port developments in the western United States please visit the Coal exports from northwest United States ports article.

Proposed Millennium Bulk Logistics Longview Terminal
In September 2010 Peabody Energy announced that "Coal's best days are ahead." Peabody stated that exports of coal from the Powder River Basin in Montana and Wyoming will be central to its expansion goals. The Oregonian in September 2010 reported that Northwest ports, and in particular ports in Portland, Oregon, may be used in the future to export coal to Asia. The Port of Portland said it doesn't have the space for coal exports in the short-term, but its consultants cited coal as a potential long-term market if it adds terminals on West Hayden Island.

In early November 2010 Australia-based Ambre Energy asked Cowlitz County officials in southern Washington State, which borders Oregon, to approve a port redevelopment that would allow for the export of 5 million tons of coal annually. On November 23 Cowlitz County officials approved the permit for the port redevelopment, which is to be located at the private Chinook Ventures port in Longview, Washington. Coal terminals also are proposed at two other sites along the Columbia River.

Environmentalists stated that they would oppose any such actions, arguing that coal contributes to pollution and global warming. Early discussion of how many jobs the port would produce was roughly twenty total.

In November 2010 Powder River Basin coal producer Cloud Peak Energy CEO Colin Marshall stated that a coal port on the West Coast was "absolutely more than a pipedream."

Other Powder River Basin producers, including top US coal miner Peabody Energy, have talked about the potential for a new export facility on the West Coast, with Oregon and Washington being mentioned as the top locations of choice.

Groups including the Sierra Club and Columbia Riverkeeper have vowed to stop the industry's expansion into Asia, a market currently dominated by coal from Australia and Indonesia.

In May 2011 Arch Coal announced that it was establishing a new subsidiary, Arch Coal Asia-Pacific Pte. Ltd., and named Renato Paladino president. A press release stated that Paladino will be responsible for Asia-Pacific regional business development, marketing and sales of thermal and metallurgical products, and regional supply chain expansion for the company. The new office will be located in Singapore.

Proposed Terminal: Gateway Pacific Terminal
The Gateway Pacific Terminal is a proposed terminal at Cherry Point near Ferndale, Washington, and would have a maximum capacity of about 54 million tons. On February 28, 2011, SSA Marine applied for state and federal permits for the $500 million terminal, triggering formal environmental review. If approved, the terminal would begin construction in early 2013 and operations in 2015.

On March 1, 2011, Seattle-based SSA Marine announced it had entered into an agreement with St. Louis-based Peabody Energy to export up to 24 million metric tons of coal per year through the Gateway Pacific Terminal. Goldman Sachs owns a portion of SSA Marine's parent company. According to Peabody, the terminal in Whatcom County would serve as the West Coast hub for exporting Peabody's coal from the Powder River Basin of Wyoming and Montana to Asian markets. The project would ramp up potential U.S. coal exports to Asia from Washington state. Another coal export terminal proposed in Longview, the Millennium Bulk Logistics Longview Terminal in southwest Washington, has drawn environmental opposition. That Millennium Bulk Logistics terminal would be a joint venture between Australia-based Ambre Energy and Arch Coal.

Environmental groups have appealed to Washington's Shoreline Hearings Board over a permit awarded for the port by Cowlitz County commissioners.

According to Gateway Pacific Terminal's website the company plans on providing a "highly efficient portal for American producers to export dry bulk commodities such as grain, potash and coal to Asian markets." Additionally, the site contends that the "Gateway project will generate about 4,000 jobs and about $54 million a year in tax revenue for state and local services. Once in full operation, it's estimated that Gateway will provide almost $10 million a year in tax revenue, create about 280 permanent family-wage jobs directly, and nearly 1,400 additional jobs through terminal purchases and employee spending."

During the week of June 6-10, 2011 SSA Marine filed a permit application the proposed Gateway Pacific Terminal. The application read:

"The applications submitted herein will cover the difference in scope between that approved project and our full buildout plan."

The earlier permit was noted in the application was approved by the Whatcom County Council in 1997. At that time, it envisioned a 180-acre development that would handle 8.2 million tons of cargoes per year, including petroleum coke (produced by local refineries) iron ore, sulfur, potash and wood chips. Coal was not mentioned an an export commodity in the earlier permit.

In June 2011 it was announced that developers of the Gateway Pacific Terminal must apply for a new shoreline permit if they want to build a facility capable of handling up to 54 million tons of cargo a year, including coal. The decision came from Whatcom County planners and was a setback to SSA Marine which proposed to build the terminal at Cherry Point, Washington. SSA Marine holds a 1997 permit for a smaller facility that could handle up to 8.2 million tons of cargo a year, not including coal. The company argued that the larger coal export facility would require processing the application as a "revision" to the existing permit, and that the revisions would undergo the same level of scrutiny as a new application.

Environmental groups represented by Earthjustice stated that the application as a revision would require less public scrutiny and would mean the project could avoid tough environmental standards because it would be reviewed under 1992 shorelines laws instead of more recent ones. The groups included Sierra Club, Climate Solutions, and ReSources for Sustainable Communities.

Whatcom County sent the letter announcing their decision on June 23, 2011. The letter, from county Planning Supervisor Tyler Schroeder, said a new shorelines permit is required under county law because the new proposal is "beyond the scope and intent of the original approval." County code requires that it meet that standard for a permit revision, he said.

Port of St. Helens potential candidate for coal export to Asia
In June 2011, The Oregonian reported that the Port of St. Helens in Columbia City, Oregon was being eyed as a potential Northwest port that would export coal to Asian countries. It was also reported that Columbia Riverkeeper, which opposes coal export, asked a judge to require St. Helens Port to release all of its coal-related documents. In a response, a lawyer for the port stated that doing so would violate a confidentiality agreement and "would result in the greatest harm to the public interest which can be imagined -- a loss of jobs in our community."

Oregon Democratic Gov. John Kitzhaber, wrote in a statement to The Oregonian that the terminal "should not happen in the dead of night. We must have an open, vigorous public debate before any projects move forward."

Kinder to export Colorado coal from Port of Houston
In late April 2011 Kinder Morgan Energy Partners stated that the company will begin exporting Colorado mined coal through its bulk terminal at the Port of Houston in Houston, Texas. According to its first quarter earnings report, Kinder wrote that they had signed an agreement with a “large western coal producer” and will invest about $18 million to expand the ship channel facility.

Kinder stated it will be the first time Western coal will be exported from the Port of Houston. In February 2011, Kinder Morgan inked a deal with Massey Energy to export up to 6 million tons of coal annually through Kinder’s Myrtle Grove, La., facility.

Seward Coal Terminal in Alaska
The Seward Coal Loading Facility, referred to as the Seward Coal Terminal, was built in 1984 to provide for the export of coal from Usibelli Coal Mine. The facility consists of a railroad spur, a variety of coal storage and handling and loading equipment, as well as a large dock. The Alaska Railroad purchased the facility in 2003 and has performed a variety of upgrades including an ongoing expansion of the coal storage areas in anticipation of increased coal exports from Alaska.

Related SourceWatch articles

 * United States and coal
 * China and coal
 * Millennium Bulk Terminals
 * Australia and coal
 * Colombia and coal
 * Global use and production of coal
 * Indonesia and coal
 * South Africa and coal
 * Corporate market share of global coal export trade
 * Coal exports
 * Coal Exports from Northwest United States Ports

External resources

 * "Coal Exports and Port Development: A Technical Memorandum," U.S. Office of Technology Assessment, April 1981